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Racing Champions To Reduce Licensing Exposure in 2001
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 Racing Champions Corporations today announced that in order to reduce future minimum guaranteed royalty payments, it has successfully renegotiated a number of NASCAR and entertainment related licenses. In total, the Company has lowered its future minimum guaranteed royalty payments in 2001 by over $5 million compared to 2000. The Company also announced that it will record a $2.5 million pre-tax charge in the current fourth quarter. This amount relates to minimum guaranteed royalty payments from NASCAR related licensing agreements which exceed royalties earned on product sales. Despite this charge, the Company expects to report a profit for the year ending December 31, 2000. Bob Dods, Chairman and Chief Executive Officer said, ``With the industry-wide decrease that has occurred in the sales of NASCAR merchandise and consistent with current licensing trends, we felt that reducing our future licensing exposure and commitments was an appropriate step. We will continue to develop and market our Racing Champions� line of NASCAR die-cast replicas, Press Pass� trading cards and/or other products for over 50 race teams in NASCAR's Winston Cup and Busch Grand National Series and in the NHRA Championship Drag Racing Series.'' Dods added, ``We have also reduced future minimum guarantees or in some cases eliminated unprofitable licensing agreements related to licenses for a number of entertainment properties. These reductions and eliminations, give us increased flexibility to enter into new, more risk-balanced licensing arrangements, as well as focus on our core licenses and properties.'' Founded in 1989, Racing Champions is a leading producer and marketer of innovative collectibles and toys sold in multiple channels of distribution and available at more than 20,000 retail outlets. The Company sells American Muscle™ collectible die-cast vehicle replicas, NASCAR and NHRA die-cast racing replicas, officially licensed die-cast and preschool products of automobiles, trucks, agricultural, heavy equipment and powered-recreational and sport vehicles, AMT™ model kits, Press Pass™ trading cards and NASCAR souvenirs and apparel. High-profile licensing partners include NASCAR, NHRA, John Deere, Case, Polaris, Honda, Caterpillar, Ford, GM, Chrysler, Texaco and Warner Brothers. [Posted 12/13/2000]
  
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